Any controversy or claim arising out of or relating to this contract, or the breach thereof, shall be settled by arbitration administered by the American Arbitration Association under its Construction Industry Arbitration Rules, and judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.
Why Every Construction Contract Needs an AAA® Arbitration Clause
Manage post-project risks, control expenses and safeguard your business with industry-leading dispute resolution
Construction projects remain complex ventures susceptible to disputes. Design flaws, change orders, delays and payment discrepancies can disrupt schedules, strain financial resources and harm business relationships. Incorporating an American Arbitration Association® (AAA) clause into your construction contracts provides a powerful safeguard against these risks.
AAA Construction Rules:
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Key Benefits of AAA Construction Clauses
- Predictable and Streamlined Dispute Resolution: AAA clauses establish a clear framework for resolving disputes outside the traditional court system, minimizing delays and uncertainties. The AAA’s Construction Industry Arbitration Rules aim to provide procedural efficiency and transparency.
- Access to Specialized Expertise: AAA’s Panel of Construction Arbitrators possess deep knowledge of construction law, industry standards and technical practices. This ensures that complex disputes are evaluated by professionals who understand the nuances of your project.
- Cost and Time Savings: Arbitration is often significantly faster and less expensive than litigation. You can protect your project’s budget and timeline by avoiding protracted court battles.
- Preservation of Business Relationships: Litigation’s adversarial nature can damage professional relationships. Arbitration fosters a more collaborative environment, allowing parties to resolve disputes while maintaining the potential for future partnerships.
- Binding and Enforceable Outcomes: Arbitration awards are generally binding and enforceable in court. This provides a strong incentive for all parties to comply with the outcome.
Custom Clauses
Beyond the standard clause, you have many options to customize your arbitration or mediation clause, such as specifying the number of arbitrators, hearing locale and overall length of the arbitration. Writing your clause effectively can have a big impact on the time, cost, expertise and convenience of resolving any future dispute.
Clause customizations can include:
- Number of arbitrators
- Arbitrator qualifications
- Hearing locale
- Discovery limitations
- Proceedings length and more
ClauseBuilder®
ClauseBuilder is a simple online tool to help individuals and organizations develop clear and effective arbitration and mediation clauses. The self-guided process begins with a standard AAA Clause and allows you to select a variety of options to customize the clause to the needs of your desired process or contract.
AAA Construction Team
For more information, contact a member of the Construction Team
Iman Hyder-Eliz
Vice President
States: Alabama, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Michigan, Mississippi, North Carolina, Ohio, South Carolina, Tennessee, West Virginia, Wisconsin
Michael Powell
Vice President
States: Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington
Rod Toben
Vice President
States: Arkansas, Colorado, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma, South Dakota, Texas, Wyoming
Jacqueline Vega Cintron
Vice President
States: Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Virginia
